US–China Trade War 2025

The US–China Trade War 2025 has once again captured global attention as high-level officials from both nations convened in Kuala Lumpur for critical negotiations.

These talks, held on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit, aim to prevent a fresh escalation in the long-standing trade conflict between the United States and China.

Key Delegations and Objectives

The delegations include US Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and China’s Vice Premier He Lifeng alongside top trade negotiator Li Chenggang.

The officials are working to stabilise a fragile truce that has been undermined by recent tit-for-tat measures. On one side, the US has expanded its export blacklist to cover thousands of Chinese firms, and on the other, China has imposed stricter export controls on rare earth minerals—critical for electronics, electric vehicles, and defence manufacturing.

The main objective of these discussions is to avoid an escalation that could disrupt the global supply chain and destabilise international markets, which is central to the US–China Trade War 2025 scenario.

Tariffs, Technology, and Rare Earth Controls

• President Donald Trump has threatened to impose sweeping US-China tariffs on Chinese imports starting November 1.

• Currently, the US maintains an average tariff of 55% on Chinese goods under the temporary trade truce.

• Resolving disputes over technology restrictions in the US China’s rare earth export licensing is seen as pivotal.

• These minerals play a key role in high-tech industries and defence manufacturing, making them a strategic lever in the ongoing US–China Trade War 2025.

• Experts from the Atlantic Council and the Centre for Strategic and International Studies have warned that any failure to reach a compromise could trigger triple-digit tariffs, further destabilising the Chinese economy and impacting the global supply chain.

Preparing for Trump–Xi Meeting at APEC 2025

• The Kuala Lumpur talks are considered a precursor to a possible bilateral meeting between President Trump and President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit 2025 in South Korea.

• The agenda is expected to include tariffs, technology restrictions, agricultural trade, and broader geopolitical issues such as Taiwan and the imprisonment of Hong Kong media tycoon Jimmy Lai.

• This meeting is significant, as it may be the first Trump–Xi interaction since mid-2024 and could determine whether the US–China trade truce expiration leads to renewed economic tensions, a core issue in the US–China Trade War 2025.

Exam-Oriented Insights for SSC Aspirants

1. US–China Trade War 2025: Central focus on tariffs, export controls, and technology restrictions.

2. US-China tariffs: Sweeping tariffs on Chinese imports averaging 55% under the current truce, potentially rising to 155%.

3. China's economy could face major disruptions due to restricted rare earth exports and reduced US imports.

4. Rare earth minerals China: Vital for electronics, electric vehicles, and missile systems.

5. Trade conflict: Long-standing economic rivalry between the two nations affecting global markets.

6. Impact of the US–China trade war on the global economy in 2025: potential slowdown in global trade, rising commodity prices, and supply chain disruptions.

7. China export controls: Licensing regime on strategic materials affecting tech and defence sectors worldwide.

8. How Trump tariffs affect Chinese imports and exports: increased costs for US companies, retaliation by China, and uncertainty for businesses.

9. Upcoming Trump–Xi meeting at APEC summit 2025: Key diplomatic opportunity to prevent escalation.

10. US–China trade truce expiration and global market risks: November 10 marks the expiry, creating legal and economic uncertainty.

Why This Matters for SSC Exams

Understanding the US–China Trade War 2025 is crucial for SSC aspirants because it covers multiple dimensions of the economy, international relations, and global trade policies.

Questions related to US–China trade tensions in 2025, the Chinese economy, and the global supply chain are often asked in the current affairs and general studies sections. Being aware of these developments helps aspirants tackle questions on technology restrictions in the US and China, China's rare earth export licensing, and US-China tariffs confidently.

Final Thoughts

The US–China Trade War 2025 has intensified as top economic officials from both countries met in Kuala Lumpur to prevent a fresh escalation in their long-standing trade conflict.

The discussions, held alongside the ASEAN summit, focus on resolving disputes over US-China tariffs, technology restrictions, and China’s rare earth export controls, which are vital for electronics, electric vehicles, and defence industries. These talks also set the stage for a potential Trump–Xi meeting at the APEC summit 2025.

Analysts warn that failure to reach a compromise could destabilise the Chinese economy and disrupt the global supply chain, impacting trade, agriculture, and technology worldwide. The outcome will shape global markets and international relations in the coming months.